Ticketmaster UK Boss Defends Dynamic Pricing Amid Criticism of High Ticket Costs
Recently, Ticketmaster UK has come under fire for its dynamic pricing system, particularly following controversy over Oasis reunion tour tickets, where some fans ended up paying much more than anticipated. Andrew Parsons, the Managing Director of Ticketmaster UK, defended the pricing model during his testimony before the Business and Trade Select Committee. He emphasized that the company doesn't set ticket prices but works closely with event organizers and artists to determine the cost of tickets in advance, arguing that the prices reflect careful planning.
Parsons explained that the pricing tiers are decided by the event organizers and are not influenced by automated technology. According to him, there is no price fluctuation during sales; instead, tickets are set at specific prices that can vary based on demand and availability. He also clarified that fans might perceive an increase in price when cheaper tickets sell out, but this does not mean the prices have changed during the checkout process.
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A key point of contention was the high prices fans experienced when purchasing Oasis tickets, with some tickets reaching £350, far above the originally advertised price. Despite these complaints, Parsons maintained that dynamic pricing is a tool used by event organizers to ensure they maximize revenue and reduce the chances of tickets being bought by scalpers for resale at inflated prices. He emphasized that if the value of tickets isn't captured by the primary market, it would inevitably go to touts, which harms both fans and the music industry.
Parsons also noted that dynamic pricing can sometimes work in reverse, with prices dropping for certain events to boost ticket sales. He reassured the committee that while premium prices may grab headlines, most tickets sold through Ticketmaster are under £35, with 75% of tickets priced below that amount. Furthermore, he pointed out that 90% of the shows on their platform do not sell out, indicating that there is still a competitive landscape for ticket pricing.
The discussion also touched on the secondary ticketing market, with MPs questioning the company's role in reselling tickets at higher prices. Parsons voiced support for government measures that aim to cap resale prices but cautioned that even a 30% cap could still leave room for touts to profit. He also highlighted concerns about resale sites misrepresenting ticket prices by using misleading search engine results, which often lead consumers to believe they are purchasing from official sellers when they are not.
In defense of Ticketmaster's fees, Parsons insisted that all charges are transparent from the outset. He pointed out that, on average, Ticketmaster’s fees are around 11% of the ticket's face value, and that the fees are shared with other parties like venue operators.
Despite the controversy, Parsons firmly stood by Ticketmaster’s pricing practices, arguing that the system is designed to ensure fairness for both fans and artists, while reducing the influence of scalpers in the ticketing ecosystem. The ongoing government consultation into secondary ticketing and dynamic pricing suggests that changes could be on the horizon, with Ticketmaster keen to adapt to new regulations while maintaining a competitive market.
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